Objective: Marital infidelity significantly impacts both the community and the institution of marriage. This study aims to develop a theoretical framework for analyzing marital infidelity through a game-theoretic lens. Methodology/Design/Approach: This research employs a game-theoretic model to predict the decision-making processes of unfaithful partners. Static game models are utilized to explore the interactions between spouses, focusing on identifying Nash equilibria that encapsulate the complexities and uncertainties inherent in infidelity-related decisions, whether through pure or mixed strategies. Results: The analysis reveals strategic dynamics in marital infidelity, where Nash equilibria indicate scenarios where one or both partners may engage in extramarital affairs. A Nash equilibrium is established when both partners perceive the benefits of infidelity as outweighing the costs, leading to diminished trust and communication. The Mixed-Strategy Nash Equilibrium (MSNE) hypothesis suggests that spouses may oscillate between fidelity and infidelity based on probabilistic strategies. Research Implications: This study provides a game-theoretic perspective on marital infidelity, whose findings may be used to inform legal frameworks and social policies addressing the consequences of infidelity, potentially impacting family counseling and legal services. Value/Originality: This research introduces a game-theoretic approach to understanding trust and transgression in marriages, identifying two primary categories of Nash equilibria. It fills a theoretical gap while providing practical insights into marital behavior.

Background: This paper examines the economic implications of market segmentation on consumer purchasing behavior with a particular emphasis on intertemporal pricing strategies in dynamic markets. Methods: In order to analyze optimal discount rates and the timing for price reductions for consumer segments, including loyal and deal-prone customers, a detailed mathematical model was developed. The model incorporates theories of consumer behavior and pricing elasticity to simulate market responses to price changes throughout a product’s lifecycle. Results: This research indicates that market segmentation enhances sales by targeting the distinct preferences of loyal consumers, who are less price-sensitive and who stabilize revenue streams, and deal-prone consumers, who respond to price reductions. Customizing pricing strategies for loyal consumers and deal-prone consumers increases sales volumes and optimizes profitability. Conclusions: This research improves our comprehension of market segmentation and dynamic pricing, providing a practical framework for businesses to create effective pricing strategies that can be promptly implemented. It emphasizes the significance of understanding consumer behavior and price sensitivity in the interest of revenue promotion. This study also emphasizes the social implications of equitable pricing practices, promoting the implementation of transparent and value-based strategies to promote market inclusivity and consumer trust.

Global warming (GW) refers to the gradual increase in Earth’s average surface temperature caused by human activities. This phenomenon has far-reaching consequences that affect the environment, society, and economy and has created a multitude of challenges for the wine industry, affecting grape cultivation, wine production, aging, and quality management. To analyze the negative impact of GW on the wine industry and to examine the equilibrium that maximizes welfare and profit in the face of climate change. A mathematical model that considers the various stages of wine production to examine the wine industry’s equilibrium that maximizes welfare and profit. Global warming impacts the wine industry’s equilibrium, causing measurable distortions and an inefficient market solution. However, our analysis also indicates that adaptation to GW is possible by adopting and adjusting new agricultural practices. Our findings suggest that GW has a notable negative impact on the wine industry. Winemakers should consider adapting their agricultural practices. In addition, policymakers need to take action to mitigate the effects of climate change on the wine industry. Policymakers should promote the adoption of renewable energy sources and sustainable farming practices in the wine industry and provide financial incentives and regulatory support to maximize welfare.

Cryostorage of human embryos produced during the course of in vitro fertilization (IVF) treatment is an important issue for hospitals, governments and individuals who are facing fertility challenges. Embryo cryo-storage is giving rise to increasing economic, ethical and legal concerns due to the increasing holding and operational costs of storage, the rise in the number of unused embryos, and the absence of economic incentives for hospitals to provide free cryostorage services. These issues may reduce the availability of storage services and encourage individuals to seek embryo donations from abroad with attendant medical risks and the possibility of illegal transactions. Given that both public and private healthcare institutions are increasingly motivated by economic factors, increasing the economic incentive to offer cryostorage has the potential to increase the pro-vision of storage facilities. This paper proposes a nonlinear programming model to enable a hospital or other service provider to determine the optimal price it should charge for storage. The suggested pricing policy comprises three components; however, our analysis shows that an optimal solution can only include a maximum of two of these components. Finally, the paper introduces a numerical example as well as a real-data comparison among several providers to demonstrate the applicability and value of the proposed model.

The role of market segmentation in shaping pricing strategies for new products is critical. This study highlights the significance of tailoring pricing decisions in meeting the unique needs, preferences, and price sensitivities of different consumer segments in order to maximize profitability and market penetration. Understanding customer behavior and preferences in transitioning from high to low prices during new product introductions is crucial. The responses of various customer groups to price changes are essential in influencing product innovation. The model developed in this study serves two purposes: (1) to determine the optimal time to switch from high to low prices, and (2) to determine the optimal price discount when switching from high to low prices for different customer segments. Segmented marketing results in larger profits due to increased sales to loyal customers. However, deal-prone customers may purchase less when segmented.

The classical backward bending of the labor supply curve has been extended to the case of the inverted S-shaped labor supply curve during the last three decades. According to this extension, at very low net wage levels near the subsistence income level, the positive shape of the supply curve of labor may also be curved backward and become negatively sloped. A decrease in the low wage rate requires an increase in the labor supply, to maintain a minimum income level for survival. The S-shaped curve leads to a double-peaked Laffer curve, which also includes the possibility of three tax rates, each of which enables the collection of the same tax revenue. This may occur in contrast to the traditional single-peaked Laffer curve, which has two tax rates with the same revenues.

The present study concerns product diversification. The products differ in size, shape, flavor, fat content, etc., so that the producer can more specifically modify the particular product to the unique requirements of nonhomogeneous customers. The mathematical model assumes diversified demands of nonhomogeneous consumers for an initial unsorted item. The sorting process generates a better match between customer requirements and the actual supply of sorted products. Thus, the implementation of sorting costs allows for an increase in customer demands by adopting product characteristics that are closer to customer needs and tastes. The study also considers the pricing policy for diversified products in order to determine if price discrimination is preferable for attaining the manufacturer’s goal of profit maximization.

Throughout the last two decades, some economists have objected to the conventional shape of one peak point on the Laffer curve. This paper examines the reservations presented in the literature and demonstrates the possibility of a Laffer curve with three peak points. Such a shape may be due to the three heterogeneous population groups of younger workers, adult males, and adult females. These groups respond differently to net wage rate changes, thus reducing the applicability of the changing of tax rates by policymakers.

This paper examines the positive aspects of aging. Some items, such as valuable and rare stamps, old coins, works of art, and antiques, become more expensive over time. More popular examples demonstrating the positive effect of aging that influences price are the aging of boutique wine and artisan cheese. The present paper examines the wine aging process that brings about quality improvement. This process also leads to determining (i) optimal aging periods for different wines; (ii) optimal grape juice inventory allocations and prices for different wines; (iii) optimal quantities of different kinds of wine; and (iv) the time durations of wine production and consumption from each vintage. These aspects are considered in an environment in which the demand increases over time due to the aging and rarity of the product.

A large reservoir of frozen human embryos is a negative outcome of their cryostorage for in vitro fertilization treatments. The existence of unused stored embryos, referred to herein as "remaining embryos", places the service provider (usually a hospital) in a fragile situation. This is especially the case when the issue of discarding unused embryos arises or when unexpected failures associated with preserving the inventory occur. Moreover, the absence of intrinsic incentives for couples to donate embryos to the secondary market, as well as the increased operational costs for maintaining a viable storage service over time, further challenge this unique service. The present paper develops an optimization model that determines a charging scheme for the couples using the storage service and a payment scheme for couples who agree to provide their remaining embryos as a source for the secondary market. Couples who do not agree to receive payment for their remaining embryos are charged for discarding them (referred to herein as the "discarding payment"). While this model includes rewards and motivates couples to provide embryos for the secondary market, it also reduces the remaining inventory, thereby responding to the two key problems of embryo storage. The analytically developed model is used to derive optimal solution algorithms. A numerical example and a sensitivity analysis of the key parameters are presented.

The research investigates optimal pricing and inventory policies in the case in which the demands of different periods are identical. However, the supplies fluctuate due to cycles in nature as well as additional environmental and other factors. Each cycle contains two periods or seasons. A peak season with a large given supply is followed by a regular season with a small supply. The model deals with deterministic supply and the question of what policy is adopted regarding the quantities produced and sold in the markets at each period. It first considers the case without the use of inventory for delivery between periods. In the second case, inventory that can be produced at the peak period is only for sale at the regular period. It is sold as non-fresh inventory that is a 'supplement' to the fresh output produced at the regular period.

Fluctuations in demand require diverse considerations with respect to planned capacity. At peak periods, decreased capacity may result in supply shortages and   thus in lower revenues and unachievable profits.  In contrast, smaller capacity at off-peak periods reduces the substantial costs of large and unutilized capacity.   The questions to be addressed ask (i) what the optimal pricing policies are at peak and off-peak periods; (ii) what the optimal capacity is for profit maximization of the supplier; and furthermore (iii) how the shifting of demands from peak to off-peak periods may reduce fluctuation and impact profits. The present paper develops a model that compares two cases. In Case 1 it is not possible to transfer partial demand from a peak period to an off-peak period, while in Case 2 it is possible to do so. The comparison between the cases illustrates various results, some of which are less intuitive than others. For instance, a larger gap between the peak and off-peak periods leads to a larger optimal capacity in Case 1 than in Case 2. However, a smaller gap presents a different picture. When there is less willingness to switch demand between the periods, the capacity of Case 2 is larger than that of Case 1.

The concentration of industries affects the total welfare of the economy and changes its distribution among all economic agents. This paper examines an entire supply chain that includes multiple stages within the cheese industry. It presents the effect of market concentration levels on prices, quantities, profits, consumer surplus and the total welfare of all sectors involved in the production and consumption processes. Since increased concentration may lead to a higher degree of inequality, the relationship between inequality and efficiency is investigated. These issues are demonstrated by using a simplified structure of the cheese industry.

Baumol developed an equation of demand for money for the transaction motive. It is affected positively by cost per withdrawal and negatively by the interest loss resulting from holding cash. The present paper suggests modifying the basic and simplified Baumol approach by adding another element to the transaction equation. Availability of cash encourages spontaneous purchases resulting in customer losses. Through cost minimization with respect to three elements instead of two as in the original Baumol equation, a new modified Baumol equation was created. It is examined by using an empirical data set and the results support the modified version of the Baumol equation. Customers respond positively to cash availability when they spend more on luxury goods. This is prominent especially among unmarried and most likely young customers. Due to high-income elasticity, spontaneous purchasing is higher among wealthier customers and full-time workers who maintain a steady and secure employment position. Since such customers have a weakness for spontaneously and sometimes even carelessly buying luxury items, from their point of view they create a good and efficient buffer by decreasing the available cash in hand and thereby reducing or possibly even preventing their wasteful behavior. The new version is robust and statistically more significant than the original equation presented in 1952.

We propose a novel approach to improve efficiency in service systems. The idea is to utilize the server's idle time to perform and store "preliminary services" for customers who will arrive in the future. Such a model is relevant to settings in which service consists of multiple consecutive tasks, some of which are generic and needed by all customers (and thus can be performed even in their absence), while other require the customer's presence. To show the model's benefits, we formulate a two-dimensional single-server queueing-inventory system for which we derive closed-form expressions for the system's steady-state probabilities, as well as for its performance measures. Assuming linear costs for customers waiting in line and for stored preliminary services, a cost analysis determines the optimal maximal number of stored preliminary services in the system. Numerical examples illustrated with graphs demonstrate the advantages of our approach, in terms of cost savings, as compared with the classical M/M/1 model.

Purpose: The purpose of this study is to investigate the relationship between production and salary and rewards of senior employees.Design/methodology/approach: The Support Vector Machines (SVM) machine-learning algorithm classifier, was used to distinguish between production and non-production sentiments.Findings: Senior managers sent significantly more work-related emails than non-senior employees. However, the length of work-related emails was found to be significantly greater among non-seniors. Finally, the gap between the two groups of workers in terms of productivity is minor, especially as compared to the gap in salaries. Originality: This study offers an efficient tool to automate employee productivity assessment and use it to prove the unjustified compensations at Enron Corporation, an energy company that went bankrupt

We study a single-server queue in which the service consists of two independent stages. The first stage is generic and can be performed even in the absence of customers, whereas the second requires the customer to be present. When the system is empty of customers, the server produces an inventory of first-stage ('preliminary') services (denoted PSs), which is used to reduce customers' overall sojourn times. We formulate and analyze the queueing-inventory system and derive its steady-state probabilities by using the matrix geometric method, which is based on calculating the so called rate matrix R. It is shown that the system's stability is not affected by the production rate of PSs, and that there are cases in which utilizing the server's idle time to produce PSs actually increases the fraction of time during which the server is dormant. A significant contribution is the derivation of an explicit expression of R, whose entries are written in terms of Catalan numbers. This type of result is rare in the literature and enables large-scale problems to be solved with low computational effort. Furthermore, by utilizing Laplace-Stieltjes transform and its inverse, we obtain the distribution function of customers' sojourn time. Finally, based on the probabilistic study, we carry out an economic analysis using a practical example from the fast food industry. (C) 2017 Elsevier Inc. All rights reserved.

labour market flexibility, working time arrangements and work-life balance are important issues on the political agenda of many societies. The present paper captures the trade-off between the interests of employers and employees by adjusting working hours to the employee availability constraints. A theoretical model is developed in order to determine the ideal wage gap between full-time and part-time employees. The paper proposes a method of computing a "fair" wage rate for part-time employees that is driven by purely financial considerations which ensure that neither employers nor employees are penalized by the employment arrangement. The ideal wage that is identified can serve as a benchmark for a "justifiable" wage gap (also referred to as "wage differences") between part-time and full-time employees. Policymakers can rely upon the method presented for computing a "fair" wage rate for part-time employees. Another dimension of labour flexibility in the field of Human Resource Management is discussed in order to define an appropriate wage gap between part-time and full-time employees.

During the decades following the presentation of the original Baumol equation (1952) the role of holding cash was significantly changed. The original Baumol equation considered the two elements of (i) the value of transactions, positively affecting cash holding; and (ii) the interest rate, negatively affecting cash holding. A third element that was not considered is the economic behavioral aspect of the availability of money that may lead to spontaneous purchasing. This element reduces the inclination of customers towards holding cash.The present paper develops various kinds of loss functions due to spontaneous purchasing behavior and presents several different modified Baumol equations that are more reliable and realistic than the original Baumol equation.An important implication of our paper relates to the ineffectiveness of monetary policy. When the interest rate is very low, in the original Baumol model we approach the liquidity trap range in which monetary policy is ineffective. However, according to our new model the monetary policy still remains effective, even at low or zero interest rates. This is the case even in an environment in which the monetary policy seems to be totally inefficient, as we recently find in several industrial countries throughout the world. In some sense, this reminds us of the idea of an automatic stabilizer that supports fiscal policies. The new modified Baumol equation in the current paper reveals an automatic stabilizer which accelerates the effectiveness of monetary policy, and avoids the phenomenon of the liquidity trap, even in cases of zero interest rates.

This paper analyzes empirical differences in adoption services of public and private agencies. The empirical investigation includes cross-sectional time series aggregated data for the 50 states within the United States from 1996 to 2010 with detailed statistical analysis of the period from 2000 through 2010 for which consistent and comprehensive data exists. Under private agencies, only 11.6months elapse from the time the courts terminate the natural parents' custody until the child is adopted, while with public agencies the same process lasts for 16months. Furthermore, during the decade from 1996 to 2006 private agencies completed more adoptions than public agencies. However, the performance gap in favor of private agencies was eliminated in 2006 and in the following years. The results suggest that privatization of adoption of young and healthy children did not show an advantage for private services. However, transitioning adoption services to private agencies for older children or children with complex special needs, improves the adoption services compared with those of public agencies. Subsidization especially improves the adoption of older children and of all children with special needs while it appears to be statistically insignificant or implied as unnecessary for healthy babies.